AgendaAgenda

2012 POWER SECTOR BUDGET2012 POWER SECTOR BUDGET

BUDGET EXPECTATIONSBUDGET EXPECTATIONS

Need for ReformsNeed for Reforms

Reforms in Power Sector Reforms in Power Sector

BUDGET MEASUREBUDGET MEASURE

RegulationsRegulations

ImpactImpact

Role of ITRole of IT

System OverviewSystem Overview

2012 POWER SECTOR BUDGET2012 POWER SECTOR BUDGET Over the past few quarters, the power Over the past few quarters, the power

sector has seen hard times given the sector has seen hard times given the severe liquidity crunch that hit existing severe liquidity crunch that hit existing as well as new projects. And as such, as well as new projects. And as such, the sector once again saw capacity the sector once again saw capacity addition that was way below the targets addition that was way below the targets set out as part of the XIth Five Year set out as part of the XIth Five Year Plan. While the situation on the funding Plan. While the situation on the funding side has improved considerably since side has improved considerably since the middle of 2008, companies are the middle of 2008, companies are stepping up on new projects with stepping up on new projects with utmost caution. This is especially given utmost caution. This is especially given that linkage for fuel (especially coal and that linkage for fuel (especially coal and gas) is becoming a tough nut to crack. gas) is becoming a tough nut to crack. However, rural electrification continues However, rural electrification continues to get a boost in each passing budget to get a boost in each passing budget and so is the improvement in the T&D and so is the improvement in the T&D network. Budget 2011 was no different, network. Budget 2011 was no different, as it allocated higher funds for the as it allocated higher funds for the development of the power sectordevelopment of the power sector with a with a view of speeding up the expansion of view of speeding up the expansion of new generation capacities new generation capacities

BUDGET EXPECTATIONSBUDGET EXPECTATIONS

Need for ReformsNeed for Reforms Objective of integrated National GridObjective of integrated National Grid

• 5 regional grids working at varying grid frequency5 regional grids working at varying grid frequency

• Integration needs Frequency Normalization means proactive Integration needs Frequency Normalization means proactive

load managementload management

• Alternative – Insulation thro’ HVDC links – ExpensiveAlternative – Insulation thro’ HVDC links – Expensive

Regional surplus & shortagesRegional surplus & shortages

• Surplus in east and shortage in southSurplus in east and shortage in south

Continued functioning at non-standard grid frequencyContinued functioning at non-standard grid frequency

• Damage to Generator & End User equipmentDamage to Generator & End User equipment

• Hidden cost passed to customer in long termHidden cost passed to customer in long term

Central Vs State GeneratorsCentral Vs State Generators

• Capital cost Vs Variable costCapital cost Vs Variable cost

Beneficiaries not liable to pay fixed cost for their Beneficiaries not liable to pay fixed cost for their

allocated share if not drawing allocated share if not drawing

• Increased cost of energy for beneficiaries drawing energyIncreased cost of energy for beneficiaries drawing energy

Generation even without demandGeneration even without demand

• High grid frequencyHigh grid frequency

Need for ReformsNeed for Reforms (contd…)(contd…)

Reforms in Power SectorReforms in Power Sector

Reforms in tariff structure of bulk powerReforms in tariff structure of bulk power

• Better system operationsBetter system operations

• Better grid disciplineBetter grid discipline

through commercial incentives & through commercial incentives &

disincentivesdisincentives

Ideal Grid Frequency = 50 HzIdeal Grid Frequency = 50 Hz

ObjectiveObjective

ReformsReforms

Electricity Act 2003Electricity Act 2003

• Replaced Electricity (Supply) Act 1948Replaced Electricity (Supply) Act 1948

Regulations Regulations

• Availability Based Tariff (ABT)Availability Based Tariff (ABT)

• Merit Order Dispatch (MOD)Merit Order Dispatch (MOD)

• Plant PerformancePlant Performance

• Energy ManagementEnergy Management

SEB TrifurcationSEB Trifurcation

RegulationsRegulations

Availability Based Tariff (ABT)Availability Based Tariff (ABT)

Deals with tariff structure for bulk powerDeals with tariff structure for bulk power

Performance based tariffPerformance based tariff for supply based tariff for supply based tariff

System of rewards and penalties seeking to enforce day System of rewards and penalties seeking to enforce day

ahead ahead pre-committed schedulespre-committed schedules (One & One-half hours in (One & One-half hours in

advance)advance)

Promote Promote responsibilityresponsibility & & accountabilityaccountability in power generation in power generation

Paradigm shift from Paradigm shift from maxmax powerpower to to maxmax reliabilityreliability

A path to deregulated power marketA path to deregulated power market

ABT ComponentsABT Components

Capacity charges (Fixed)Capacity charges (Fixed)

Payable against declared capacity of station for Payable against declared capacity of station for allocated capacityallocated capacity

rather than rather than actual consumptionactual consumption

Full fixed charges payable at PLF of 68.49%Full fixed charges payable at PLF of 68.49%

Incentive @ 0.4 % of equity for each percentage increase between 70-Incentive @ 0.4 % of equity for each percentage increase between 70-

85%. Beyond 85% it is 0.3%85%. Beyond 85% it is 0.3%

Energy charges (Variable)Energy charges (Variable)

As per actual consumptionAs per actual consumption

Unscheduled Interchange (UI) charges: Penalty that depends on severity of Unscheduled Interchange (UI) charges: Penalty that depends on severity of

deviation. Payable/recoverable if:deviation. Payable/recoverable if:

Generator generates more, thereby increasing frequency;Generator generates more, thereby increasing frequency;

Generator generates less than the schedule, thereby decreasing Generator generates less than the schedule, thereby decreasing

frequency;frequency;

Beneficiary overdraws power, thereby decreasing frequency;Beneficiary overdraws power, thereby decreasing frequency;

Beneficiary under draws power, thereby increasing frequencyBeneficiary under draws power, thereby increasing frequency

Merit Order DispatchMerit Order Dispatch

Objective from Objective from maximum productionmaximum production to to optimal productionoptimal production

Multiple unit power plant to Multiple unit power plant to identify optimum loadingidentify optimum loading for for

each unit to save on operational costseach unit to save on operational costs

Identify units to bring online / offline to meet plant demand Identify units to bring online / offline to meet plant demand

at at minimum operating costminimum operating cost

Dispatching Dispatching least cost powerleast cost power in preference to more costly in preference to more costly

powerpower

TrifurcationTrifurcation

State Electricity Boards (SEBs) trifurcated as shown –State Electricity Boards (SEBs) trifurcated as shown –

Holding Company

Generation Company

Transmission Company

Distribution Company

Impact of ABT – TRANSCO Impact of ABT – TRANSCO

Improved and efficient transmission systemsImproved and efficient transmission systems

• More generation capacity being addedMore generation capacity being added

• Bottleneck in transmission to be avoidedBottleneck in transmission to be avoided

Better forecasting systemsBetter forecasting systems

• Vested with role of coordination between consumers & generatorsVested with role of coordination between consumers & generators

Better communication and information systemsBetter communication and information systems

• Communicate 15 min generation & consumption schedule to each partyCommunicate 15 min generation & consumption schedule to each party

• Convey any unforeseen change in such a scheduleConvey any unforeseen change in such a schedule

Improved metering & billing systemImproved metering & billing system

• Ensure adequate metering capabilities for proper implementation of tariff structureEnsure adequate metering capabilities for proper implementation of tariff structure

• Specialized energy meters that keep track of 15-min energy aggregates & frequency Specialized energy meters that keep track of 15-min energy aggregates & frequency

for each interval to take care of energy charges and UI chargesfor each interval to take care of energy charges and UI charges

Impact of ABT – GENCO Impact of ABT – GENCO

Advanced control & monitoring systems to closely monitor ex-bus Advanced control & monitoring systems to closely monitor ex-bus

output of plantoutput of plant• Generation should closely follow 15-minute scheduleGeneration should closely follow 15-minute schedule

Integrated information & communication systemIntegrated information & communication system• To capture data from all componentsTo capture data from all components

• Unscheduled downtime is not very acceptable in the ABT regimeUnscheduled downtime is not very acceptable in the ABT regime

MOD to ensure economic operation MOD to ensure economic operation • Cost of generation, ramping, start up & shut down of each unit variesCost of generation, ramping, start up & shut down of each unit varies

Performance calculation for each unit of plantPerformance calculation for each unit of plant• Corresponding optimization to be doneCorresponding optimization to be done

Pro-active management plan Pro-active management plan • Unscheduled deviation from power generation schedule incur considerable penaltiesUnscheduled deviation from power generation schedule incur considerable penalties

• Unexpected downtime of power plant should not occurUnexpected downtime of power plant should not occur

Impact of ABT – DISCOM Impact of ABT – DISCOM

Enhanced load forecasting systemEnhanced load forecasting system

• Consumer expected to stick to schedule of 96 intervals of 15-minute for each dayConsumer expected to stick to schedule of 96 intervals of 15-minute for each day

• Failure to comply will attract penalty - UI chargesFailure to comply will attract penalty - UI charges

• Basis of entering into commercial agreements with generating utilitiesBasis of entering into commercial agreements with generating utilities

Reliable communication and information infrastructureReliable communication and information infrastructure

• Load forecasting solution highly reliant on historical data for accuracyLoad forecasting solution highly reliant on historical data for accuracy

• To ensure smooth coordination with RLDCTo ensure smooth coordination with RLDC

Provision for in-house generationProvision for in-house generation

• Captive power plants - going to be more & more popular during transition to Captive power plants - going to be more & more popular during transition to

decentralized & deregulated power marketdecentralized & deregulated power market

Business ObjectiveBusiness Objective

To generate & export electricityTo generate & export electricity

Maximize output at lowest inputMaximize output at lowest input

Maximizing returns require following ABT demand curveMaximizing returns require following ABT demand curve

Efficiency

Minimize Cost Maximize Returns

Input Output

Regulations – Organization MappingRegulations – Organization Mapping

Company

Power Plants

Units

ABT, Energy Management

Merit Order Dispatch

Plant Performance

ABT RegimeABT Regime

Revenue calculation for GENCO depends onRevenue calculation for GENCO depends on

• Available capacity of plantAvailable capacity of plant

• Implemented scheduleImplemented schedule

• Grid FrequencyGrid Frequency

• Actual energy exportActual energy export

• Applicable tariff modelApplicable tariff model

To maximize revenue & minimize input costTo maximize revenue & minimize input cost

• Generation to closely follow demand scheduleGeneration to closely follow demand schedule

• Optimal loading of plant unitsOptimal loading of plant units

Role of IT Role of IT

Monitor various Monitor various online real-timeonline real-time plant parameters plant parameters

from different generating stations from different generating stations

Establish a full-fledged Generation Control Room Establish a full-fledged Generation Control Room

for for performance diagnosis performance diagnosis && optimization optimization

Provide suitable Provide suitable connectivityconnectivity between each power between each power

station & Control Roomstation & Control Room

IT SolutionIT Solution

SoftwareSoftware

HQ LevelHQ Level• ABT Optimization for UI Revenue MaximizationABT Optimization for UI Revenue Maximization

• Economic Load DispatchEconomic Load Dispatch

• Online Plant Performance MonitoringOnline Plant Performance Monitoring

Plant LevelPlant Level• Power Plant Monitoring for each UnitPower Plant Monitoring for each Unit

• Online Performance Monitoring & Calculation for each UnitOnline Performance Monitoring & Calculation for each Unit

• Merit Order Despatch (MOD) at Plant levelMerit Order Despatch (MOD) at Plant level

• Dispatch Monitoring for Switchyard Energy MetersDispatch Monitoring for Switchyard Energy Meters

ABT Optimization for UI Revenue MaximizationABT Optimization for UI Revenue Maximization

Ability to optimize tariff by maximizing UI revenueAbility to optimize tariff by maximizing UI revenue

Generate invoices on basis of total energy exported & applicable UI chargesGenerate invoices on basis of total energy exported & applicable UI charges

Account auxiliary consumption of plant for billing purposeAccount auxiliary consumption of plant for billing purpose

Account for operations of “Peak Load” plants & grid maintenanceAccount for operations of “Peak Load” plants & grid maintenance

Account for cost of operating (Supply of Reactive power, Startup/ Stop operations) Account for cost of operating (Supply of Reactive power, Startup/ Stop operations)

plant for these purposes, as & when they are made applicableplant for these purposes, as & when they are made applicable

Economic Load DispatchEconomic Load Dispatch

Calculate individual plant OLC schedule for all power plantsCalculate individual plant OLC schedule for all power plants

Provide online communication between LDC & GCR regarding generation scheduleProvide online communication between LDC & GCR regarding generation schedule

Online Plant Performance MonitoringOnline Plant Performance Monitoring

Close monitoring of power plants & generating automatic deviation alerts at Close monitoring of power plants & generating automatic deviation alerts at

appropriate timesappropriate times

HQ Level FunctionsHQ Level Functions

Plant Level Functions

Power Plant Monitoring for each Unit

Integrated information & communication system to capture unit data

Calculate various plant parameters for each unit performance.

Suggest operator for effects of varying plant parameters

Online Performance Monitoring & Calculation for each Unit

Monitor different plant parameters that may affect plant performance such as

superheat temperature, reheat temperature, inlet/ outlet temperatures, excess air

ratio etc.

Merit Order Despatch (MOD) at plant level

Support simulation facilities

Facilitate in determining optimal loading of plant units

Dispatch monitoring for switchyard energy meters

Close monitoring of switchyard energy meters to compare actual generation against

scheduled generation

Broad WorkflowBroad Workflow

Generation Capacity Estimation by Plant

Fuel Reserves Maintenance & Outage Information

Load Despatch Center

OLC

Tariff CalculationImplemented Schedule

ABT, PPA

Tariff Modeling

Generate Invoice

MOD Engine

Load Forecasting

Plant Performance

Day Ahead Schedule

Grid Management Variation

Actual Energy Export

Σ

Software Features - ABT

Open communication architecture

Easy to use configuration utility

Flexible tariff calculation & UI charges module

Invoices in user-defined format

Reports and trends

Exporting reports & other data

Collecting 15-minute block aggregate data from meters &

storing in ABT server

Monitoring actual generation Vs scheduled generation

Software features - MOD Software features - MOD

Capability to handle multiple units Capability to handle multiple units

Use of historical data to generate a best-fit cost curve for Use of historical data to generate a best-fit cost curve for

the unitthe unit

Configuring individual units with historical data and Configuring individual units with historical data and

operating constraintsoperating constraints

Unit commitment approach based on maintenance Unit commitment approach based on maintenance

schedule, minimum up and downtimes to be imposed on schedule, minimum up and downtimes to be imposed on

each uniteach unit

Allows users to perform simulationAllows users to perform simulation

Communication BackboneCommunication Backbone

HQ

Plant

Plant

Load Dispatch Center

U N I V E R S I T YU N I V E R S I T Y

U N I V E R S I T YU N I V E R S I T Y

U N I V E R S I T YU N I V E R S I T Y

U N I V E R S I T YU N I V E R S I T Y U N I V E R S I T YU N I V E R S I T YU N I V E R S I T YU N I V E R S I T Y

U N I V E R S I T YU N I V E R S I T Y

U N I V E R S I T YU N I V E R S I T Y

U N I V E R S I T YU N I V E R S I T Y

U N I V E R S I T YU N I V E R S I T Y

APPLICATION INTERFACE

DATA ACCESS CONTROL

DATA LAYER

DATA STORAGEDATA STORAGE

GEN. SCH. ENGINE

GEN. TAR. ENGINE

TARIFF MOD. ENGINE

REPORTS

TARIFF CALCULATION

QUERY

DATA EXPORT MODULE

Data Layer

ABT Engine

MANUAL DATA

DCS/DAS DATA

NON-DCS DATA

Generation Control Room

Parameters fromunits in plants

System Architecture

DCS Unit ImplementationDCS Unit Implementation

Local Data Store

Communication Driver

Data Validation

Intermediate & Detailed Results Performance Calculation

Reports & Results

Manual Inputs / ConfigurationDCS / DAS

Non-DCS Unit ImplementationNon-DCS Unit Implementation

RTU 1

Terminal Server

RTU n

MOD Server

MUX

Other data

RTU 2

Signal SplitterSignal Splitter

Control Room

Analog Cards Plotters

RTU/ Data Concentrator

TransducersTransducersControllersControllers

Router

ChallengesChallenges

DCS Units:DCS Units:

OPC compliance (tag, value and timestamp)OPC compliance (tag, value and timestamp)• Tags vary from unit to unit – 1 tag list for each DCS - Depends on commissioningTags vary from unit to unit – 1 tag list for each DCS - Depends on commissioning

• Non OPC Compliant Interface Bus would require protocol gatewaysNon OPC Compliant Interface Bus would require protocol gateways

• Additional licensing cost or additional one-time licensing cost for implementing protocol gatewaysAdditional licensing cost or additional one-time licensing cost for implementing protocol gateways

Non-DCS Units:Non-DCS Units:

Synchronization between DCS & non-DCS unitsSynchronization between DCS & non-DCS units

Selecting minimum critical parameters to be monitored by GCRSelecting minimum critical parameters to be monitored by GCR• A standard parameter list for all non-DCS units will not workA standard parameter list for all non-DCS units will not work

• Parameters – Analog or DigitalParameters – Analog or Digital

Identifying location of critical analog signalIdentifying location of critical analog signal• Parallel tapping of signal with without affecting current setupParallel tapping of signal with without affecting current setup

Real time V/s Polling FrequencyReal time V/s Polling Frequency

Historical data availabilityHistorical data availability

System OverviewSystem Overview

System ComponentsSystem Components

Data Acquisition SystemData Acquisition System

Communication Infrastructure at Communication Infrastructure at

PlantPlant

Communication BackboneCommunication Backbone

Communication Infrastructure at HQCommunication Infrastructure at HQ

Software solution at plant & HQ levelSoftware solution at plant & HQ level

System in nutshellSystem in nutshell

Data AcquisitionData Acquisition

• Capturing plant parametersCapturing plant parameters

MOD CalculationsMOD Calculations

• Calculating various plant performance parameters for each unit at plant Calculating various plant performance parameters for each unit at plant

levellevel

Data capture from ABT metersData capture from ABT meters

• Monitoring performance of each unit and plant in control roomMonitoring performance of each unit and plant in control room

ABT CalculationsABT Calculations

• Calculating applicable tariff for each beneficiaryCalculating applicable tariff for each beneficiary